Toward a Wiser, More Equitable Policy on Visas for the Professional High Tech Workforce

1. Toward a Wiser, More Equitable Policy on Visas for the Professional High Tech Workforce Proposal by the Programmers Guild to Representative Zoe Lofgren

2. About the Programmers Guild • Founded in 1998 • The Programmers Guild promotes the interest of high tech workers in the USA • Endorse candidates that are supportive of our goals • Educate constituents of our local districts as to the effects of government programs that impact them financially • See our site at http://www.programmersguild.org/american.htm for more information

3. Contacts • Terry Oldberg (650) 941-0533 terry@oldberg.biz • Kris Moe (408) 374-1875 kemoe1966@yahoo.com • Claude Clark (408) 433-9242 clarkclaude@prodigy.net • Norm Matloff matloff@laura.cs.ucdavis.edu

4. Background • U.S. Code generally restricts the ability of employers to import non-immigrant workers from abroad • Since 1998, employers have lobbied successfully for relaxation of these restrictions in relation to computer professionals

5. The market for professional labor has been inundated with non-immigrant visa holders

6. The saturation of foreign high tech workers has negatively impacted the domestic high tech work force

7. Professional Visas from 1986 to 2002 • *“Professional Visa” : an L-1, H-1B or TN visa • Sources • Visas: Nelson, G., http://www.zazona.com/ShameH1B/VisaGlut.PDF • Degrees: National Science Foundation

8. Cumulative, Professional Visas vs. High Tech Jobs (millions) • Sources • Visas: Nelson, G., http://www.zazona.com/ShameH1B/VisaGlut.PDF • Jobs: American Electronics Association

9. One out of five jobs in Santa Clara county has been lost since 2000 Source: San Jose Mercury News Posted on Sat, Mar. 01, 2003 Valley of the grim191,500: JOBS LOST IN COUNTY SINCE HEIGHT OF THE BOOM, OR 1 IN 5By Margaret SteenMercury News Updated state figures released Friday show just how devastating the downturn has been in Silicon Valley: Nearly one in five jobs in Santa Clara County has vanished since the height of the boom in December 2000. The data also confirms what job-seekers have felt for months: The county's unemployment rate last year was worse than previously estimated, in some months almost a full percentage point higher. The revised rate was more than 8 percent for nearly all of 2002. In January, unemployment was 8.6 percent.

10. Jobs for Programmers Dropped 21% in Metropolitan San Jose between 2000 and 2001

11. While the Government Handed Out Hundreds of Thousands of H-1B visas Sources Number of visas from Nelson, G., http://www.zazona.com/ShameH1B/VisaGlut.PDF Proportion of visas to programmers from INS

12. Economic Effects of the H-1B, L1 and TN visa programs • Unemployed or under employed domestic workforce • Lower average wages for professionals in the impacted industry • Lost tax revenue for Federal, State and local agencies • Financial ruin for many domestic workers and their families

13. Employers’ Arguments for Vast Numbers of Visas • “Desperate shortage” • Needed access to geniuses

14. Inconsistencies with “Shortage” • Young, computer industry engineers make no more than young non-computer industry engineers (1998, UC Berkeley study) • Old, computer industry engineers make less than old non-computer industry engineers (1998, UC Berkeley study)

15. Inconsistencies with “Shortage” (continued) • Firms hire only a few percent of applicants for programming jobs (Matloff, “Debunking the Myth…” • Less than 50% of computer science majors find professional-level jobs at graduation (Matloff, “Debunking the Myth…” • 20 years after graduation, 81% of computer science majors have dropped out of their profession (Matloff, “Debunking the Myth…”

16. Inconsistency with “Genius” • Number of graduate degrees in Computer Science awarded to foreign nationals: 3000 per year • Cap on new, H-1B visas for industry: 195,000 per year • Cap on H-1B visas for academia: none • Cap on L-1 visas: none • Cap on TN visas: none

17. Current Law Rejected by Citizens • In 1998, 82 percent of a sample of adults opposed a bill "allowing U.S. companies to sponsor 190,000 additional foreign technical workers, as temporary employees for up to six years." 16 percent were in favor, while 2 percent were unsure. (Harris Poll)

18. Current Law Rejected by Citizens (continued) • In 2000, 67% of a sample of residents of Southeastern Michigan opposed a bill to increase the cap on H-1B visas by 297,500 over the next 3 years. 22% supported the legislation and 11% had no opinion (Sarpolus poll)

19. Principles underlying a wiser, more equitable policy on visas for programmers • Visa programs should not negatively impact the finances of the domestic workforce • Equal treatment of domestic workforce and visa holders

20. Principles (continued) • Ability of high tech companies to hire true geniuses • Maximization of the economic benefits, given the constraints

21. Proposed Law • Visas for programmers shall be replaced by licenses to employ foreign programmers • The government shall sell the licenses at auction to the highest bidders • The licenses may be traded among employers at prices set by a free market • Eliminate exemption for educational institutions

22. Proposal • The Programmers Guild shall assist Representative Lofgren’s staff in drafting a law along the lines presented • Representative Lofgren shall propose passage of this law to the U.S. House of Representatives